Banorte’s $1.05 Billion Notes Offering

November 17, 2021

Cleary Gottlieb represented Goldman Sachs, Credit Suisse, Barclays, Morgan Stanley, and MUFG, as initial purchasers, in a $1.05 billion Basel III capital offering by Banco Mercantil del Norte, S.A., Institución de Banca Múltiple, Grupo Financiero Banorte (Banorte).

The transaction consisted of an offering of (i) $500 million 5.875% Perpetual 5-Year Callable Subordinated Non-Preferred Non-Cumulative Tier 1 Capital Notes and (ii) $550 million 6.625% Perpetual 10-Year Callable Subordinated Non-Preferred Non-Cumulative Tier 1 Capital Notes. The transaction priced on November 17, 2021, and is scheduled to close on November 24, 2021.

Banorte is the largest bank in Mexico that is not controlled by or affiliated with a non-Mexican financial institution in terms of total assets, deposits, and shareholders’ equity. The bank provides a wide range of financial and related services mainly in Mexico, principally in the areas of commercial banking, long-term savings, and brokerage services. This is Banorte’s fourth and fifth Tier 1 issuances since Basel III requirements were implemented in Mexico.